The Rules of Successful Investments
To learn from your other people's mistakes is always better, than from yours. These simple rules will help you save a lot of money.
We have collected some accepted rules, which you should follow when investing their own funds. You will see that all of these rules are reasonable and more than logical. Adhering to them, you will be able to reduce their risks to a minimum and, most probably, you will be a successful investor. D&A Consults offers to see these rules for freelance business licensing in Dubai.
- What funds to invest?
Before invest money, you have to form a so-called investment bank. The investment bank is an amount, which you will spend for investment in a particular direction. How much money will be in your investment bank is your decision. For a start, limit yourself to no more than 50% of your available funds.
- How much to invest?
Do not invest more than you can afford. The maximum investment amount should never exceed the size of your investment bank. Any investment is always associated with certain risks. If you lose all the invested funds, this loss should not be a disaster for you.
- Save your money
When you receive a salary or payments from another source of income, first of all allocate the money to replenish its investment Bank. You should get used to allocate 10-20% every month. Only when you allocated money, you can you’re your expenses for the next month.
- Try to lose less
Expenditures, wastes and mistakes are inevitable, you have to submit. But who can decrease it and recover faster, he is a winner. To spend less than earn is the most important rule of each investor. Exactly the difference between money, which you spend and earn is your profit. It is obvious that you have two ways to increase this difference – earn more and spend less. Do not think that you can just earn more and live better – this impression is deceptive.
The growth of the profits without limitation of expences leads to the life «in grand style», unlimited costs and decrease of profit. Having the opportunity to spend more, you will start to buy expensive things, throw money, with time you will have bad habits, for example, addiction to alcohol. So you must control your costs. It does not mean that you need starve, having millions under the pillow, but remember – each waste must be reasonable.
- Differentiate your risks.
Never put all eggs in one basket. You should not invest in one company even if it makes an impression of stability and success. Always divide attachments into 3-5 directions. Ideally all these directions must be different and not linked. No one is immune from natural disasters, financial crises and other bad changes. If one direction will crumble, another can grow up because of this or, at least, do not crumble too.